The United States has pledged $125 million under a new economic cooperation agreement with Egypt, marking a significant milestone in bilateral relations through the launch of the first-ever Strategic Objective Agreement for Advancing Mutual Prosperity between the two countries.

The cooperation framework targets several priority sectors, including water management, infrastructure, technology, agriculture, food security, healthcare, education, workforce development, innovation, artificial intelligence, and water security.

The agreement, announced during a ceremony at Egypt’s Ministry of Foreign Affairs, is designed to deepen economic cooperation, support private-sector growth, and expand opportunities for American businesses operating in the Egyptian market. The initiative reflects a broader effort by both nations to strengthen trade, investment, and sustainable economic development.

According to the US Embassy in Cairo, the new framework will leverage Egypt’s strategic location, large workforce, and growing consumer markets to accelerate economic modernization and attract increased private investment.

“Under this agreement, the US and Egypt will work together to leverage Egypt’s strategic economic advantages to expand economic modernization, private-sector growth, and opportunities for American businesses,” the embassy said in a statement.

The agreement also seeks to enhance Egypt’s economic self-reliance while ensuring that US-supported development programs deliver greater efficiency, accountability, and long-term impact.

The new Strategic Objective Agreement builds upon the Trade and Investment Framework Agreement (TIFA) that has guided economic cooperation between Egypt and the United States since 1999.

As Egypt pursues economic reform and private-sector-led growth, the new US commitment is expected to support critical development priorities while opening new avenues for commercial engagement, innovation, and job creation across key sectors of the Egyptian economy.